Central Depository Services Limited (CDSL) is a prominent player in India’s financial markets. As one of the leading securities depositories, CDSL plays a crucial role in facilitating the seamless and secure trading of stocks and other financial instruments. With its advanced technology and robust infrastructure, CDSL has earned the trust of investors and market participants alike. Its recent surge in share value, reaching Rs 1,390, reflects the company’s resilience and growth potential, making it an intriguing choice for those looking to invest in the Indian stock market.
CDSL Stock Shares Jump Over 16% In 5 Days
CDSL Stock shares started the week on a strong note, surging nearly 5% on Monday morning. Over the past week, these shares have witnessed an impressive 16.26% increase, attributed to a buy rating from Ambit issued the previous Tuesday. Opening at Rs 1,308 on Monday, they briefly dipped to Rs 1,327.85 before rebounding to Rs 1,353.10, marking a substantial 5.56% jump.In the last five days following the buy recommendation, the shares have recorded an even more substantial increase of 16.99%. This surge was complemented by a breakout from a horizontal resistance trendline, with a 6.6% gain to reach Rs 1,282 and the formation of a bullish candlestick pattern on the daily timeframe.CDSL stocks have also regained their 20 and 50-day Simple Moving Averages (SMA), indicating a strong positive bias. Furthermore, the daily, weekly, and monthly Relative Strength Index (RSI) all remained in positive territory. Over the past month, CDSL shares have shown steady growth, registering a significant 13.40% increase.
The Buy Recommendation From Ambit For CDSL
In terms of the latest news on CDSL shares price, the stock is currently trading at around ₹1,203.05 on the NSE. This is down from a 52-week high of ₹1,451.90, but still well above the 52-week low of ₹880.90. Some analysts are bullish on CDSL shares, citing the company’s strong financial performance and its position as a leader in the Indian depository market. They believe that the stock is currently undervalued and could see significant upside in the coming months.
Last week, CDSL shares experienced an uptick in trading activity following a positive development. Financial advisory firm Ambit initiated coverage on the stock with a ‘buy’ rating, hailing CDSL as the prime candidate for benefiting from the concept of ‘equitisation.’ Ambit’s bullish stance was underlined by a target price of Rs 1,400, implying a substantial 22% potential increase in the stock’s value.
Furthermore, Ambit highlighted the unique position of CDSL as one of only two central securities depositories in India, commanding a market worth Rs 900 crore. Their optimistic outlook extends to projecting CDSL’s market share to reach Rs 2,000 crore by the financial year 2030, indicating a promising growth trajectory for the company.
The Current Flow Of CDSL Shares Price
CDSL shares continued their upward trajectory, surging by an impressive 12% in Monday’s trading session. This recent surge has contributed to a remarkable 26% gain for the stock over the course of September. This surge is largely attributed to the growing optimism surrounding the company’s business prospects. The stock garnered significant attention after Ambit Capital initiated coverage on September 5, issuing a ‘buy’ rating along with a target price of Rs 1,400, further fueling investor enthusiasm.
According to Ambit Capital, CDSL has seen a substantial increase in its demat market share, rising from 50 percent in December 2019 to an impressive 73 percent. Ambit Capital anticipates a medium-term growth in revenue (11 percent) and EBITDA (12 percent), exceeding pre-Covid levels (8 percent and 6 percent, respectively). This growth is attributed to households increasing their allocation in equities, the rising popularity of mobile investing, and an increase in equitisation with more companies going public. CDSL’s valuation is noteworthy, trading at 34 times FY25 EPS, which is an 8 percent premium compared to its peers. This premium is attributed to CDSL’s superior margins, higher returns, and lower competition in the market. Ambit Capital also identifies the potential for additional growth in repositories as an upside risk, while a decrease in retail investors or cyber-attacks is considered key downside factors.
CDSL’s stock performance has been remarkable, surpassing the previously set target with ease as it reached a high of Rs 1,430 on Monday. This accomplishment reflects the strong momentum and investor confidence surrounding the company’s shares.
The current price of one share of CDSL is 1,393 INR.
FAQs About CDSL And Thier Stocks Price
How has CDSL’s stock price been performing recently?
CDSL’s stock price has been on the rise recently, with notable increases in September. It breached the target set by Ambit Capital and reached a high of Rs 1,430.
How does CDSL’s valuation compare to its peers?
CDSL trades at a premium compared to its peers, with a valuation of 34 times FY25 EPS. This premium is justified by factors such as better margins, higher returns, and lower competition.
What are the risks associated with investing in CDSL?
While there is potential for upside, such as additional growth in repositories, there are also downside risks, including a decrease in retail investors’ participation or the threat of cyber-attacks.